Dubai SME, an agency of the Department of Economic Development, mandated to develop the small and medium enterprise (SME) sector in Dubai, and SHUAA Capital , the UAE’s leading investment bank, signed a memorandum of understanding to extend their collaboration in advising SMEs in 2014.
The MOU commits the two institutions to provide at least 20 of the DUBAI SME 100 companies – a ranking of the top 100 SMEs in the Emirate of Dubai – with valuation advisory services, seminars and workshops on generating enhanced access to funding which remains a key challenge to SMEs.
“A vibrant SME sector has emerged in the UAE that sometimes requires support of international best practice advice,” said HH Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA. “Our investment banking team provides SMEs with the necessary tools required to make their businesses more profitable, more investable and better positioned for growth.”
Dubai SME and SHUAA concluded 22 SME valuation assessments and fairness opinions in 2012 and 2013. SME management teams that participated in these exercises have gained a deeper understanding of key value drivers, enabling them to take a more systematic and strategic approach in implementing sustainable growth plans, and identifying important issues within their businesses which in turn opened up new opportunities for access to funding.
Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME commented: “We are pleased to strengthen our partnership with SHUAA Capital by continuing to offer this valuable service to the Dubai SME 100 companies. Many of these businesses are well positioned to grow and we hope that our joint efforts enable them to move to the next phase of their development, attract funding partners and possibly become listed entities in the future.”
For the 2013 ranking, more than 3,000 SMEs applied or were nominated, which is 178 per cent more than the 1,092 SMEs nominated for the 2011 ranking. Considering industry averages, the net output of these SMEs is estimated at about AED 53.3 billion and total value add at AED 16.2 billion.
The total number of SME registrations and nominations in the 2013 ranking represent about four per cent of the eligible SMEs with at least three years of operations. Together, the nominated SMEs also represent a workforce of around 93,500. Sector-wise, 53 per cent of the SMEs nominated are from the trading sector, 36 per cent from the services sector and 11 per cent from the manufacturing sector.
More information on Dubai SME100 and the companies ranked under the initiative are available on the website www.dubaisme100.ae.
